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The New Estate-Planning Environment

BY Martin M. Shenkman
May 28, 2013

Two recent events have dramatically changed the face of estate planning and each will have a significant impact on divorces for years ' likely decades ' in the future. This article explores each of these two factors, identifies some of the changes relevant to matrimonial practitioners, and suggests practical steps that might be taken to address them.

2012 Gift Transfers Will Affect Matrimonial Cases

In 2012, wealthy Americans by the droves made gifts, often to irrevocable trusts, to lock some or all of the $5.12 million gift tax exemption that most feared would disappear in 2013. While the exemption was not reduced, the massive gift transfers that occurred in the last portion of 2012 will have a significant impact on matrimonial cases for years to come. As one informal measure of the wealth transferred, it has been estimated that in excess of 500,000 gift tax returns were filed for 2012, which is a dramatic increase over prior years. This article describes the range of planning and focuses on how to plan better, as matrimonial practitioners will likely have to evaluate these plans in future divorce cases. Then, some of the implications for matrimonial practitioners are discussed.

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